Caterpillar to acquire Berg

JULY 1, 2013 — Caterpillar Inc. (NYSE: CAT) will soon sell not only engines and generators but will also offer complete marine propulsion package systems. It has signed a definitive agreement to acquire Johan Walter Berg AB, including its core brand of Berg Propulsion, a leading manufacturer of mechanically and electrically driven propulsion systems and marine controls for ships.

Berg thruster

Berg will become part of the Caterpillar Marine and Petroleum Power Division. Its thrusters, propellers and control systems will be rebranded as Caterpillar soon after the close of the deal, which is expected in the third quarter 2013, pending final regulatory approvals.

Headquartered in Öckerö Islands, Sweden, Berg has designed and manufactured heavy-duty marine thrusters and controllable pitch propellers since 1929. Its proprietary systems are employed in maritime applications throughout the world that require precise maneuvering and positioning.

"Berg is one of the most highly regarded brands in the marine industry," said Tom Frake, Caterpillar vice president with responsibility for the Marine and Petroleum Power Division. "Our team will now be able to provide worldwide Caterpillar support to marine operators for a complete, optimized propulsion package, including bow thrusters, gear boxes and shaft alternators. In addition, Berg's expertise, focus on maximizing customers' uptime and minimizing operation cost aligns well with Caterpillar's value proposition."

"This marks the beginning of an exciting new chapter in our company's history and is a chance to become part of the strongest brands – both Caterpillar and MaK – in our industry," said Håkan Svensson, Berg's Chief Executive Officer. "Berg has proudly served the marine industry for 101 years, always striving to provide the best economical and environmentally sound customer solutions. We look forward to developing and providing an even greater portfolio of products and services for ship owners around the world."